Commencement of PoC for Green Hydrogen Production, Transportation and Utilization in New Zealand and the Republic of Fiji

New Businesses

Obayashi Corporation, together with its group company Halcyon Power Limited ("Halcyon Power") and Fiji Gas Pte Limited ("Fiji Gas"), has launched a demonstration project (the "Demonstration Project") to ship geothermal-derived green hydrogen produced in New Zealand ("NZ") to the Republic of Fiji ("Fiji") to be utilized as fuel for a hydrogen/diesel dual-fuel generator ("DF generator"). The Demonstration Project was adopted as Joint Crediting Mechanism (JCM) Financing Support Programme: "Pilot project for comprehensive support throughout the whole hydrogen supply chain abroad" for FY2022, by the Ministry of the Environment, Japan.

The Demonstration Project involves the production of green hydrogen generated from geothermal power at Halcyon Power's production plant in Taupo, NZ, and its marine transportation from the Port of Auckland to the Port of Lautoka, Fiji. Green hydrogen imported to Fiji will be used as fuel for the DF generator to be installed at Fiji Gas's LPG Terminal to supply electricity on the premises.

Image of the Demonstration Project

Obayashi, as the representative participant of the Demonstration Project, will manage the overall project, conduct field surveys in Fiji, transport green hydrogen by sea, and support the installation of the DF generator, while as partner participants, Halcyon Power will produce and provide green hydrogen and transport it on land between Taupo and Auckland, and Fiji Gas will operate and maintain the DF generator during the demonstration period.

In NZ, where approximately 86% (2023) of the grid power comes from renewable energy sources such as hydropower and geothermal energy, the country has set a target of raising the ratio to 100% by 2030. It also aims to achieve a decarbonized society by 2050, and hydrogen is regarded as one of the important means to achieve this goal. Obayashi's early focus on the future of renewable energy in NZ has led to the joint establishment of Halcyon Power with Tuaropaki Trust, a Maori land organization, the construction of a production plant for green hydrogen using electricity generated from geothermal power, and also the structuring of a green hydrogen supply chain in NZ. As part of engagement in green energy business, Obayashi has been supplying hydrogen to fuel cell buses and vehicles in Auckland.

Fiji, which also aims to raise the country's renewable energy ratio in power generation to 100% by 2036, has strong concerns about the impact of rising sea levels due to global warming and has taken an active stance in introducing renewable energy. The former Prime Minister Bainimarama once showed a strong interest in hydrogen and announced at the COP26 held in Glasgow in 2021 that the current government vessels would be replaced with hydrogen-powered.

Through the Demonstration Project, Obayashi will not only study the current state of energy use and policy trends in Fiji but also examine the feasibility of renewable energy business and explore the possibility of hydrogen penetration in the country.

Obayashi will further contribute to achieving carbon neutrality by promoting green initiatives including the Demonstration Project.

Overview of Halcyon Power

Company name Halcyon Power Limited
(a joint venture between Obayashi Corporation and Tuaropaki Trust)
Establishment 2018
Location Level 1, 54 Tuwharetoa Street, Taupo 3330, New Zealand
Business Green hydrogen production from geothermal power generation

Overview of Fiji Gas

Company name Fiji Gas Pte Limited
Establishment 1956
Location Corner of Amra Street & Foster Road, Walu Bay, Fiji
Business Commercial, industrial, and domestic LPG and sales of LPG-related products
(Cylinders, LPG generators, LPG air conditioners, etc.)